The second Volkswagen 1-litre car, named L1, was first shown to the public at the 2009 Frankfurt Motor Show. Limited production of the VW L1 was expected to start in 2013 but with the announcement of the XL1 in 2011 this was considered unlikely.

The L1 continues the two-seater tandem concept first shown in the 2002 1-litre concept. It has a curb weight of 381 kg (840 lb), with a low coefficient of drag of 0.195. It is 3.813 m (12.5 ft) in length, 1.143 m (3.8 ft) mm tall and 1.2 m (3.9 ft) wide. Frontal area is 1.02 m2 giving a CdA of 1.99 m2.

It uses one half of a 1.6-litre TDI engine in a hybrid installation. The 800 cm3, twin-cylinder, common-rail turbodiesel is joined by a 10 kW (13.4 hp) electric motor and has a CO2 emission 39 g/km. The engine operates in two modes: "eco" mode, giving 20 kW (27 hp), and "sport" mode giving 29 kW (39 hp). The electric motor provides extra acceleration and can power the L1 on its own for short distances.[10] Volkswagen claimed the L1 can achieve a top speed of 158 km/h (99 mph), with 0–100 km/h (0-62 mph) acceleration in 14.3 s.